Caterpillar: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 29, 2026, Caterpillar (NYSE:CAT) announced its highest quarterly sales ever, at $20.7 billion. Surging power demand from artificial intelligence data centers and infrastructure projects is expanding the company's backlog to historical levels. This momentum provides long-term visibility into multiyear revenue growth. Three key takeaways from management explain where the business is heading.

1. Data Center Power Demand Extends Equipment Orders Out to 2030

Massive electricity requirements for artificial intelligence and cloud computing are driving demand for large generator sets. This multiyear wave of orders extends Caterpillar's revenue visibility further into the future than typical industry cycles allow.

As I mentioned, backlog continues to grow due to strong order rates, and we're now taking some large reciprocating orders as far out as 2029 and turbine orders into 2030.
-- Joseph Creed, Chairman and Chief Executive Officer

2. Manufacturing Capacity Expands With a $1 Billion Factory Investment

Caterpillar is committing $1 billion to expand its facility in Sanford, North Carolina, to meet demand for compact construction equipment. The investment adds modern automation, digital production systems, and integrated logistics capabilities to achieve long-term growth targets.

To support that growth and meet increasing customer demand, we announced a $1 billion investment to expand manufacturing capacity in Sanford, North Carolina.
-- Joseph Creed, Chairman and Chief Executive Officer

3. Record $78 Billion Order Backlog Reflects Broad-Based Global Demand

Order momentum pushed total backlog to a record $78 billion, nearly doubling from the same period last year. Broad customer demand across all three main operating divisions provides substantial momentum heading into upcoming quarters.

Strong order rates across all three of our primary segments drove backlog to a record $78 billion. That's an increase of approximately $38 billion or 96% from the third quarter last year.
-- Joseph Creed, Chairman and Chief Executive Officer

Looking Ahead

Full-year 2026 revenue is growing in the mid- to high teens. Global dealer scale and manufacturing depth reinforce Caterpillar's moat as leadership tracks capacity expansion.

Our strong execution through the first nine months positions us well to meet our full year outlook. We continue to expect our full year 2026 sales and revenues to grow in the mid- to high teens.
-- Joseph Creed, Chairman and Chief Executive Officer

Strong Machinery, Power, and Energy (MP&E) free cash flow supports capital returns to shareholders.

We will maintain a strong balance sheet and continue to return substantially all of our MP&E free cash flow to our shareholders through dividends and share repurchases over time.
-- Kyle Epley, Chief Financial Officer

The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.